WASHINGTON, DC, US, March 28, 2007.
Concentrating solar power could generate cost-competitive electricity within ten years, but it would require federal incentives of US$2 billion, according to a report prepared for the U.S. Congress.
“For cost-competitive CSP, both R&D and deployment are required,” explains a ‘Report to Congress on Assessment of Potential Impact of CSP for Electricity Generation.’ The 33-page report is the Department of Energy's assessment of conflicting guidance on the economic potential of CSP, as it was directed to examine under the Energy Policy Act of 2005.
Projections by one study in the report indicate that, with continued R&D and incentives to encourage deployment, “CSP costs could become competitive with the costs of conventional natural gas-fired power plants over the next ten years,” but DOE’s survey of the CSP industry indicated such incentives could range between $1.5 and $2 billion over 14 years. That estimate does not account for utility pass-through of any increased costs to utility ratepayers.
After that level of subsidy, CSP could generate hundreds of gigawatts at 5¢ to 6¢ per kWh without further subsidies, while providing “economic, environmental and security benefits,” it concludes. “Federal policymakers must carefully weigh the potential benefits of CSP against the significant cost to taxpayers in terms of industry subsidies and the cost to ratepayers in those states where CSP would initially provide electricity at costs higher than conventionally produced electricity.”
One report from the National Research Council recommended that DOE halt most of its work on CSP because further cost reductions and deployment were not likely, while three other reports concluded that large-scale deployment of CSP could significantly reduce its cost and policy incentives would be required to spur initial deployment of the technology. Congress had directed DOE to resolve the differing conclusions of the reports.
“CSP plants do not emit criteria pollutants or greenhouse gases, an issue of growing concern throughout the federal and state governments,” it concludes. “CSP could be an element of potential future policies related to climate change.”
“The addition of CSP to a state’s portfolio increases its energy diversity and makes use of a local resource,” it adds. “Solar power is a domestic resource not subject to depletion. Placing CSP plants on the ‘right’ side of congestion can reduce grid congestion and increase grid reliability.”
